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Portugal has become the next target for speculators as the country faces problems similar to those of Greece. Both countries have relied on international investor appetite to finance deficits because their savings rates are chronically low. Investor demand, however, is diminishing, causing issues for the debt-laden countries. "The severely negative net national savings rate highlights the fact that the government deficit cannot easily be financed domestically, making it difficult for these countries to emerge from their debt trap," said Tim Lee of Pi Economics.

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Portugal has become the next target for speculators as the country faces problems similar to those of Greece. Both countries have relied on international investor appetite to finance deficits because their savings rates are chronically low. Investor demand, however, is diminishing, causing issues for the debt-laden countries. "The severely negative net national savings rate highlights the fact that the government deficit cannot easily be financed domestically, making it difficult for these countries to emerge from their debt trap," said Tim Lee of Pi Economics.

Finance ministers from across the EU are set to meet today in Madrid to discuss strategies for containing budget deficits. The meeting comes as Greece takes a step toward in requesting emergency support. George Papandreou, prime minister of Greece, requested a meeting with the EU, the European Central Bank and the International Monetary Fund. Talks are scheduled to begin early next week. Leaders in Europe are striving to prevent the first default of an EU member.

Bill Jamieson, executive editor of The Scotsman, explains how the UK's Financial Services Authority has become more powerful and influential in the wake of the financial crisis. The Conservative Party is interested in returning the FSA back to the Bank of England, but the remerger might not work out quite as planned, Jamieson writes.

Roger Liddell, CEO at LCH.Clearnet, said some of the company's rivals, such as International Derivatives Clearinghouse, IntercontinentalExchange and CME Group, are using looser standards to determine amounts of insurance needed to protect against catastrophic defaults. "There seems to be a divergence from a risk-management standpoint as to how [central counterparties] are operating," Liddell said.

Michel Barnier, internal-market commissioner for the EU, sent a letter to Spanish Finance Minister Elena Salgado saying regulators need enhanced powers to deal with troubled financial institutions. "The crisis has made it evident that a fundamental overhaul of the EU crisis management framework is now needed, and it is urgent," Barnier wrote. His suggestions include giving regulators authority to oust bank executives, impose taxes and force bondholders to share in losses.